Untitled Flashcards Set

Operations and Productivity

Q: What is Operations Management?
A: Operations Management (OM) involves planning, organizing, and supervising processes to ensure efficiency in production and service delivery.

Q: What are the three basic functions of a firm?
A: Marketing, Production/Operations, Finance/Accounting.

Q: What are the 10 strategic operations management decisions?
A: Design of goods & services, managing quality, process & capacity design, location strategy, layout strategy, human resources & job design, supply chain management, inventory management, scheduling, maintenance.

Q: What is the difference between goods and services?
A: Goods are tangible, can be stored, and resold; services are intangible, perishable, and consumed when produced.

Q: What is the difference between production and productivity?
A: Production is the actual creation of goods/services, while productivity measures efficiency (output/input).

Q: What are the two types of productivity measures?
A: Single-factor productivity and Multi-factor productivity.

Q: What are six reasons to globalize?
A: Reduce costs, improve supply chain, provide better goods & services, attract new markets, learn to improve operations, attract & retain global talent.

Q: What is sustainability?
A: The ability to meet present needs without compromising future generations, focusing on environmental, economic, and social responsibility.

Just-In-Time (JIT) & Lean Operations

Q: What is JIT?
A: A system that reduces waste by producing only what is needed, when it's needed, and in the amount needed.

Q: How does JIT differ from Lean Operations and Toyota Production System (TPS)?
A: JIT focuses on inventory reduction, Lean eliminates waste, TPS is Toyota's lean manufacturing approach.

Q: What are Ohno’s 7 wastes?
A: Overproduction, waiting, transportation, inventory, motion, over-processing, defects.

Q: What is the difference between a push and pull system?
A: Push system produces based on forecasts; pull system produces based on demand.

Q: What does Kaizen mean?
A: Continuous improvement in processes.

Q: What are three key focuses of JIT?
A: Eliminate waste, improve quality, reduce lead time.

Q: What is Kanban?
A: A visual system for managing inventory and workflow using cards.

Q: What are the advantages of Kanban?
A: Reduces excess inventory, increases efficiency, improves communication.

Supply Chain Management (SCM)

Q: What is Supply Chain Management?
A: Managing the flow of goods, services, and information from suppliers to customers.

Q: What is the objective of supply chain management?
A: Minimize costs while maximizing value and efficiency.

Q: What are six sourcing strategies?
A: Many suppliers, few suppliers, vertical integration, joint ventures, keiretsu networks, virtual companies.

Q: What are risks associated with supply chain management?
A: Supplier failures, demand fluctuations, price volatility, cybersecurity threats.

Forecasting

Q: What is forecasting?
A: Predicting future demand based on data and trends.

Q: What are three forecasting time horizons?
A: Short-term (up to 3 months), Medium-term (3 months – 2 years), Long-term (more than 2 years).

Q: What are the steps in developing a forecasting system?
A: Determine purpose, collect data, select model, make forecast, monitor accuracy.

Q: What are the two general forecasting approaches?
A: Qualitative (expert judgment) and Quantitative (historical data).

Q: What are four qualitative forecasting methods?
A: Delphi method, jury of executive opinion, consumer market surveys, sales force composite.

Q: Describe the four qualitative forecasting methods.
A:

• Delphi Method: A panel of experts answer questionnaires in multiple rounds to reach a consensus.

• Jury of Executive Opinion: Senior executives provide their insights to develop a forecast.

• Consumer Market Surveys: Data collected from potential customers to predict demand.

• Sales Force Composite: Sales representatives estimate future sales based on customer interactions.

Q: What is the difference between a time-series model and an associative model?
A: Time-series uses historical data trends, while associative models use independent variables to predict demand.

Q: What are the four components of time-series forecasting?
A: Trend, seasonality, cyclicality, random variation.

Q: What does the correlation coefficient (r) represent?
A: The strength and direction of a relationship between two variables.

Q: What is the range for the coefficient of determination (R²)?
A: Between 0 and 1, indicating how well a model explains data variation.